Cyber

Cedants are turning to the ILS market for solutions, says the broker’s Catherine Mulligan.

Global cyber (re)insurance is expected to grow 25-30 percent a year, chairman of Munich Re’s reinsurance committee Torsten Jeworrek said in Monte Carlo.

The reinsurer announced it is looking at setting up a separate balance sheet to write risk on behalf of third-party investors.

Widespread data theft from an email provider ranked as the most likely significant loss scenario in a report by the broker and analytics platform.

The insurer sounded a cautious note on cyber ILS plans after previously saying it had done some test deals.

The insurer’s chief regions and markets officer says cyber risk could be adapted to allay investor concerns about long-tail exposures.

Massive demand for cyber insurance could be an opportunity for the ILS market to expand, AIG president and CEO Brian Duperreault said at the Sifma IRLS conference in Miami.

There are some players in our industry who truly believe that any insurance risk can be securitised.

AIR Worldwide put the direct losses from the incident at between $200mn and $600mn.

The industry loss warranty will trigger based on a specified number of users in a network experiencing network failure.

ILS markets are expected to participate in the $1bn cyber pool.

The new model estimates the likelihood, severity, and insurance impact of security breach and cloud service provider downtime incidents.